Credit Card Question?

Question

If someone has a credit limit of 3000.00 – how much of that can they use, all of it? Like for example if someone has a $3000.00 credit limit and they want to purchase something for like 2890.00 can they, or can they only use some of it. I don’t understand how that works.

Thank you!

Answer 1

Yes you can make that purchase. The finance charge at the end of the month may cause you to go over the limit and will generate a over-the-limit fee. If you decide to make a purchase like that- make a payment of at least $20 directly after the purchase to make sure you are under your limit.

Answer 2

You can charge a total of $ 3000.00 on the card all at once or in increments

BUT this is the allowed credit BALANCE if there are any fees added ( like billing or annual fees - or late fees ) then you will EXCEED your allowed balance and have your rate go to the maximum plus a penalty ---always leave a reserve

Answer 3

You can use all of it but you will still be charged finance charges and any other applicable fees (depending on your terms of agreement) and this may take your balance over it's limit. If possible, try and make a large enough payment to bring the balance down before the billing cycle ends. You should have at least 20 days to do this before the statement closes.

Answer 4

You can charge up to your limit. However the cash advance is way lower than the credit limit. For example your cash limit (the total amount you can get in cash) may only be $1000.

Answer 5

You can go up to the last cent on your card-- but beware, becuase at the end of the billing cycle they add their interest, and you DO NOT want to go over the limt because of finance charges.

$2890 would give you a hundred dollar cushion so you should be okay...but make your payment promptly and for more than the minimum if you can.

ALSO, FYI, using more than about 40% of your limit DOES hurt your credit-- it makes them think you are 'over extended."
35% of your score is UTILIZATION.

Answer 6

If this is on a credit card, you can spend the entire amount in one purchase, then spend the rest of your life paying it back.

Answer 7

you should be able to use it all, but most credit card companies will flag a transaction that large and may deny it. call your credit card before you go to the store to make the purchase to let them know.

Answer 8

cut up the credit card and save the money to buy what you want.

Answer 9

The answer is yes, but don't forget about tax.

Answer 10

Your limit is your limit and you can use it all without any penalty.